Silver Futures Crash 4% To ₹2.28 Lakh/kg, US-Iran Deal Uncertainty Triggers Heavy Selloff

New Delhi: Silver futures witnessed another sharp fall on Friday, dropping 4 percent in domestic commodity markets as uncertainty surrounding the US-Iran peace agreement hurt investor sentiment and triggered heavy selling in precious metals.

On the Multi Commodity Exchange (MCX), silver contracts for July delivery fell by Rs 8,766, or 4 percent, to Rs 2,28,806 per kilogram. Trading activity remained strong, with a turnover of 11,080 lots during the session.

The decline comes after silver had already suffered a major correction in the previous trading session. On Thursday, the metal plunged by Rs 14,235, or 5.7 percent, closing at around Rs 2.37 lakh per kg, compared with Wednesday's closing level of Rs 2.51 lakh per kg.

Market experts said growing uncertainty over the US-Iran peace process has weakened confidence across global commodity markets.

Optimism over a possible peace agreement faded after important talks scheduled in Switzerland were reportedly called off. The delay raised fresh concerns over whether diplomatic efforts to reduce tensions in West Asia would succeed.

Adding to market worries, US Vice President JD Vance postponed his planned visit to Switzerland. Reports also suggested no Iranian delegation had been confirmed, increasing uncertainty over future negotiations.

Analysts said these developments have raised concerns over the timeline for restoring oil shipments through the Strait of Hormuz, a key global trade route.

Kaveri More, Commodity Analyst at Choice Broking, said MCX silver has remained under pressure for the fourth straight week, with Friday's decline extending the ongoing weakness.

Renisha Chainani, Head of Research at Augmont, said the sell-off was further intensified by the stronger Indian rupee, which touched a six-week high against the US dollar due to improving capital inflows and stronger investor confidence.

In global markets, silver prices also remained weak. Comex silver futures for July delivery fell by USD 2.85, or 4.3 percent, to USD 63.46 per ounce in New York.

Analysts believe bullion prices may remain highly volatile in the coming sessions as investors closely track geopolitical developments, global interest rate signals and economic growth trends.